March 3 (Reuters) - Australian shares inched higher on
Friday, helped by gains in miners and financials, as signals of
a measured interest rate approach from U.S. Federal Reserve
officials and prospects of an economic recovery in China lifted
investor sentiment.
The S&P/ASX 200 index advanced 0.3% to 7,272.1 by
0040 GMT. The benchmark ended 0.1% higher on Thursday.
Commenting on his preferred path of interest rate hikes in
the United States, Atlanta Fed President Raphael Bostic said he
favoured a "slow and steady" approach with quarter-point
increases for now as the appropriate course of action, giving
investors hopes for a slowdown in rate hikes.
Meanwhile, China's manufacturing activity grew at the
fastest pace in more than a decade in February, data released on
Wednesday showed, indicating that the economy is on a path to
recovery after it lifted strict COVID restrictions in December.
Market sentiment was also boosted by the lifting of
production curbs in key Chinese steelmaking hubs Handan and
Tangshan.
Investors in Australia are now awaiting a Reserve Bank of
Australia policy meeting scheduled next week, where the central
bank is expected to increase rates again by 25 basis points to
3.60%, according to a Reuters poll.
Mining stocks advanced 0.4%, hitting their
highest in three weeks and extending gains for a fourth session.
Sector heavyweights BHP Group and Rio Tinto gained 0.7% and 1.4%, respectively.
Financial stocks climbed 0.2%, with all the "big
four" banks posting gains. Commonwealth Bank of Australia rose 0.4%.
Technology stocks tracked their Wall Street peers
higher, climbing 0.6%. Block Inc's ASX-listed shares and Xero Ltd jumped 4.1% and 0.4%, respectively.
New Zealand's benchmark S&P/NZX 50 index retreated
0.6% to 11,831.02.
(Reporting by John Biju in Bengaluru; Editing by Subhranshu
Sahu)
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